The dismal sales in New York in November, when night after night paintings by Monet and Matisse, Bacon and Warhol went unsold, meant big losses for Sotheby’s and Christie’s, which had a financial interest in most of this expensive art in the form of guarantees, undisclosed sums paid to sellers regardless of a sale’s outcome.
After the fall auctions, both houses immediately began changing the way they conduct business. In addition to announcing hundreds of layoffs — with perhaps more to come — they mostly halted the practice of guarantees and stopped giving consignors a cut in the fees they charge buyers. The days of publishing luscious catalogs have ended as well.
For their part, dealers say that their phones started ringing after Sept. 15, the day Lehman Brothers filed for bankruptcy. “It’s been pretty steady ever since,” said Steven Henry, director of the Paula Cooper Gallery in Chelsea. He said he had been getting inquiries about selling art from people who had investments with Bernard Madoff, or who had seen the value of their stock or real estate assets collapse.
Matthew Marks, another Chelsea dealer, has noticed that sellers “just aren’t into gambling anymore and auctions are no longer a sure thing.”
Dealers say that despite the increase in private sales, deals do not happen as briskly as they did in the days when collectors were on waiting lists for hot artists. “Everything is a negotiation,” Marks said.
Still, he is grateful for business. “I’m not asking sellers any questions,” Marks said. “I’m just happy the phone is ringing.”
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